China

Lenovo Records 67% Net Profit Decrease for Q3

Summary:

  • Lenovo Group (0992.HK) has recorded a 67% decrease in net profit for its third fiscal quarter ended Dec.31 to US$ 98 million, reports nbd.com.
  • The company posted a 6% decrease in revenue to US$ 12.2 billion.

Why It Matters:

  • The sale of PCs is still the major component of Lenovo’s income. For the third fiscal quarter, the income from this business sector grew 2% to US$ 8.6 billion. The smartphone business posted a 23% decrease in revenue to US$ 2.2 billion. And the data center business encountered a similar decrease in income and posted revenue of US$ 1 billion.
  • The company claims it is improving its product portfolios of its smartphones and improving its sales channels, and it has decided to build a new sales channel to turn data center performance around.   
  • Lenovo Group also mentioned the potential market size of artificial intelligence and that it plans to enter the businesses of smart homes, smart offices, and so on.